Daily Digest for May 6, 2020 Posted at 6:35 a.m. by Cody Nelson |
Good morning. Lots of news this Wednesday, so here's your Capitol View.
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The projected budget deficit for Minnesota is here, and it's not pretty. The Department of Minnesota Management and Budget is forecasting a $2.426 billion shortfall. The cause is exactly what you probably expect: the coronavirus. And it's a far cry from what was projected to be a $1.5 billion surplus through July of next year.
If needed, Gov. Tim Walz can now tap a reserve fund that has $2.359 billion in it. But given the economic uncertainty, Walz said, it would be a mistake to dump the reserves now. And Myron Frans, the MMB commissioner, said Minnesota is in a better starting position because of past efforts to build up that reserve. “There's a reason we call that a rainy day fund. It's for a rainy day ... And while today is a rainy day, unfortunately, now is the time to use some of our $2.3 billion rainy day fund to help weather the severe economic downturn.”
The Legislature doesn't have to address the deficit before this session ends May 18, but ... Walz said a special session could be required. And lawmakers could make some moves to start eating away at the deficit. One small move Tuesday: the Senate pulled back on merit raises for its employees that were supposed to happen in July, which is expected to net $410,000 in savings.
Elective surgeries and dental work are OK once again. Walz lifted the ban Tuesday and doctors, hospitals and dental clinics will be able to resume work next week . Some health care workers are nervous about the decision because it will take away masks and other supplies ahead of an expected surge in COVID-19 hospitalizations. But Walz said health officials were confident in their supplies, calling the return of elective procedures a calculated risk striking "the proper balance" between safety and rebooting the economy.
State lawmakers are making a grant program to help small grocery stores deal with COVID-19. Via Brian Bakst: "Identical bills were introduced Monday and are sponsored by the chairs of the House and Senate agriculture committees. Stores with 20 or fewer employees could get grants of $500 each. Stores with more than that could qualify for $1,000. Food retail chains would cap out at $2,000. House Agriculture Chair Jeanne Poppe, DFL-Austin, said money could be used for equipment, such as checkout lane partitions and gear for customer-facing workers. 'Especially some of the smaller grocers may not have access to PPE equipment, masks or plexiglass or different things,' she said. Stores could also pay for signage to direct customers to social distance.The bill has been rolled into a broader farm finance bill expected to get a vote soon."
Mission accomplished? The White House's coronavirus task force will wind down its work later this month, NPR reports. "I think we're starting to look at the Memorial Day window, early June window as a time when we could begin to transition back to having our agencies ... begin to manage our national response in a more traditional manner," Vice President Mike Pence said. More than 70,000 people have died from COVID-19 in the U.S. so far. |
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